Scotiabank: JPY Bearish vs USD as BoJ Hike Already Priced
Scotiabank analysts note the Japanese Yen is underperforming despite strong PPI data, as markets have fully priced a 25 bps BoJ rate hike next week and another subsequent hike.
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Scotiabank’s Shaun Osborne and Eric Theoret report that the Japanese Yen (JPY) remains soft and is underperforming most G10 currencies against the US dollar.
This weakness persists even after stronger-than-expected Producer Price Index (PPI) data from Japan. The analysts point out that markets have already fully priced in a 25 basis point rate hike by the Bank of Japan (BoJ) at next week’s meeting, as well as an additional hike.
Source: FXStreet Forex News